Course Objectives for Chapter 11: Technology, Production, and Costs
Students should be able to:
· Define technology and give examples of technological change.
· Distinguish between the economic short run and the economic long run.
· Understand the relationship between the marginal product of labor and the average product of labor.
· Explain and illustrate the relationship between marginal cost and average total cost.
· Graph average total cost, average variable cost, average fixed costs, and marginal cost.
· Explain how firms use the long-run average cost curve to plan.